For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C= 2,500 + 0.75 (Y – T )I p= 1,500G= 2,000NX= 300T= 1,500Y*= 19,900 Instructions: Enter your responses as whole numbers. Autonomous expenditure: 5175Multiplier: 4Short-run equilibrium output: 20,700Output gap: (DO THIS PART)Autonomous expenditure would need to (Click to select) decrease increase by ____________to eliminate the output gap. (DO THIS PART

In this case, the autonomous expenditure is calculated to be 5175 and the multiplier value is…

Answered: For the following economy, find…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap?

C	= 2,500 + 0.75 (Y – T )
I ^p	= 1,500
G	= 2,000
NX	= 300
T	= 1,500
Y*	= 19,900

Instructions: Enter your responses as whole numbers.

Autonomous expenditure: 5175

Multiplier: 4

Short-run equilibrium output: 20,700

Output gap: (DO THIS PART)

Autonomous expenditure would need to (Click to select) decrease increase by ____________to eliminate the output gap. (DO THIS PART

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